New solar rental solution launched in South Africa

ReCharge Rental Solutions (RRS) has officially launched its energy rental solution, supported by international bank and wealth manager Investec, in South Africa.

RRS rents and maintains bespoke energy saving solutions to businesses, residential complexes, industrial factories, farms and commercial property owners.

As a platform for accredited installers and engineering, procurement and construction companies (EPCs), RRS rentalises and maintains off-grid, grid-tied and battery energy storage systems (BESS).

Its commercial rental solution is posited to provide overall energy cost savings without any initial capital outlay, upfront fees and balance sheet constraints.

By using a rental solution, businesses can direct capital and debt funding towards business activities that can yield superior returns, as opposed to having cash tied up in solar equipment, RRS avers.

The company offers two products.

The first is a five-year rent-to-own option with a balloon payment at the end of the term, giving customers the option to either own the system outright after five years or re-rent the value of the balloon payment.

Secondly, there is a five-plus-five-year rental option, where the monthly rental amount is reduced by up to 50% over the second five-year term.

RRS will also acquire energy systems that have been installed by businesses that are looking to unlock capital invested for their business needs through a sale and leaseback offering.

These options provide customers the choice, at the end of the initial term, to either upgrade and rent the latest energy solution or keep the existing system at a significantly reduced rental, RRS points out.

“There are several factors that distinguish RRS in the market, most notably we understand how needs can change, which is why we offer simplified customisable solutions, with built-in flexibility – this means customers can get the solar rental solution they need today, and in the future, while catering to their specific financial requirements,” says RRS chief commercial officer Lisa Spain Fine.

“With no capital outlay and no deposit or upfront fees, we offer customised rental terms with end-to-end management through our accredited installers and EPCs, including best-of-breed equipment with ten-year warranties. This, coupled with our exceptional technical support team, gives added peace of mind every step of the way,” she adds.

RRS manages the monitoring, maintenance and servicing of the system, and the rental contract is signed with Investec.

RRS’s rental model also aims to help business owners achieve tangible savings on their electricity costs, which are expected to continue to increase.

The company says that, compared with traditional rental models where customers are locked into a fixed system, RRS allows customers to increase the size of their system, or upgrade at any time during the rental period, as their energy requirements continue to evolve.

“This flexibility not only future-proofs our customers’ investments but also ensures optimal performance and efficiency over the long term,” Spain Fine highlights.

Given that the electricity grid is highly unreliable and electricity tariffs and diesel costs are consistently increasing, we wanted to provide affordable solutions that give the market flexibility, and which also allow businesses to align their financial goals and cash flow requirements, while reducing their operational risks.

“In fact, through us, businesses are enabled to use their equity and debt capital to grow their businesses and generate returns, rather than funding capital expenditure to produce electricity,” she adds.